Business Overview of Patanjali Ayurved Limited

This document provides a comprehensive overview of Patanjali Ayurved Limited, including its product portfolio, revenues, production facilities, and sales and distribution strategies. It also discusses the primary marketing strategies adopted by the company and its future propositions and recommendations.

Running Head: MRKT20019 MARKETING MANAGEMENT
MRKT20019 Marketing Management
Student’s Name
University Name
Author’s Note

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Table of Contents
Introduction......................................................................................................................................3
Business overview of Patanjali Ayurved Limited........................................................................3
Product portfolio..............................................................................................................................3
Revenues..........................................................................................................................................3
Production........................................................................................................................................4
Products...........................................................................................................................................5
Sales and distribution.......................................................................................................................6
Discussion........................................................................................................................................6
Primary marketing strategies.......................................................................................................7
Growth and demand inclination of the Patanjali products...........................................................7
Advantage of a visible brand.......................................................................................................9
Smart pricing................................................................................................................................9
Brand communication strategies................................................................................................10
Trust and Faith of the retail outlets............................................................................................11
Future propositions and recommendations....................................................................................11
The rural Push............................................................................................................................11
Focusing on Exports...................................................................................................................12
Conclusion.....................................................................................................................................12

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Reference List................................................................................................................................13

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Introduction
Business overview of Patanjali Ayurved Limited
Patanjali Ayurved is an FMCG company from India, whose headquarter is in Haridwar.
Starting its journey from 13th January of 2006, the majority of state has remained with Acharya
Balkrishna who also occupied the position of the Managing Director of the organisation. He had
92% stake in the company with the rest 8% being in the hands of an NRI family from UK.
Image: Patanjali Market Share
Product portfolio
The organisation is responsible for manufacturing and distribution of various products
ranging from food and beverages to cosmetics as well as fabric care also. Starting from the initial

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days of its operation, the organisation has rapidly advanced and expanded to reach various target
segments and in the current time it operates with a plethora of Ayurvedic brands
Revenues
Chart 1: Revenue
(Source: Yadav and Tikoria 2017)
Production
Patanjali food as well as the herbal Park of Haridwar is the primary production facilities
that are operated by Patanjali Ayurved. The future business plans of business organisation

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include the establishment of more business units in India as well as in Nepal. In 2016, herbal
Park as well as Patanjali foods receives full-time security cover buy 35 Central industrial security
force Commandos of India. The executive director of the farm, Baba Ramdev receives Z
category protection from the central Paramilitary forces also.
Products
The products of this organisation can be digested in categories like personal care as well
as food. There are almost 450 products which include 45 categories of cosmetics, 30 categories
of food and so on (Thomas and Vatavwala 2019). According to the official records of the
company, the products that are manufactured by them are developed from Ayurveda as well as
other natural components. Beauty and baby products have also been launched by the organisation
in recent times. Most importantly, manufacturing division of Patanjali Ayurvedic has patent for
more than 300 medicines which can cure arrange of diseases as well as poor body conditions
starting from common cold to chronic paralysis.
In fact, in the last month of 2015, day launched instant noodles in the market. However
the food safety and security Authority of India, and the production of instant noodles under
Patanjali brand name as neither Ayush nor Patanjali foods, the two subsidiary production
companies of Patanjali Ayurvedic Limited, had the rights of manufacturing instant noodles under
their brand name (Gupta 2016).
In the year 2016, Patanjali announced that we are going to enter the textile
manufacturing. Initially starting with manufacturing of traditional Indian clothes like kurta
pajama, which purest linen available in the country, the company has gradually shifted to
production of Western clothing also.

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In 2016, the organisation announced that a new manufacturing division of Patanjali
herbal as well as Mega Food Park was going to be established in Balipara, Assam with an
investment of at least 1000 crore INR and the manufacturing capacity of the plant was going to
be 1 billion tons of average goods every year. The manufacturing plant of Patanjali in Assam has
started operating partial, and after it is completed it is supposed to be the largest facility of the
company in India. It is not worthy that they have already 50 manufacturing units across the
country.
Sales and distribution
Patanjali Ayurvedic limited has nearly 8000 retail outlets as of 2018. They have also
developed their E-commerce website for online sales of their product and currently the
organisation is also target in railway station as well as airports. Patanjali Ayurvedic limited has
also collaborated with the Pittie group as well as Kishore Biyani’s Future Group in 2015 (Sen
and Rajagopal 2017). This give a big strategic whose to the organisation as Patanjali products got
the licence of selling their Ayurvedic items in separate counters in all the Future Group outlets in
India and even outside India. The products of Patanjali Ayurveda are also available in the
modern trade stores which include the likes of Hyper city, Reliance Retail commerce Star Bazaar

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as well as other online channels of Patanjali Ayurvedic which has been co-founded by yoga guru
Ramdev. The current sales target for the financial year 2018-19 is rupees 14000 crore INR
(Arora, N., Singh and Grewal 2016). Ranging from the year 2015, the sales of the company has
increased by about one 150% (Sengar, Sharma and Agrawal 2017). The annual increment rate of
the organisation had been an average value of 5000 crores INR (Pandey 2017).
The FMCG division of the organisation also operates dealership as well as distribution
ship mode of business of the country and this franchise basis of organisational growth is
expected to acquire meaning of overseas distribution channels also, with time.

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Discussion
Primary marketing strategies
The industrial sources Review that the market share of Patanjali is supposed to be around
8% at the end of the year 2018 and this can be considered to be big success in this category
which herbal products, Lever Ayush as well as Patanjali Ayurvedic industry market players
operating in the market of Ayurvedic products in India in the current moment.
They are likely to be able to you double dare revenue accumulation starting from rupees
5000 crores in 2016 and still ranging at about rupees 12000 INR in financial year 2018-19 (Singh
and Gopal 2016). This is evident from the data source of Reliance Securities. Operating about
9000 retail outlets in India, the organisation is also planning to implant there stores at all major
railway stations as airports.
Growth and demand inclination of the Patanjali products
Patanjali Ayurvedic to only 5 years to establish itself as a major Ayurvedic brand in the
country since the demand for Patanjali products has declined enormously. The grand success that
has been acquired by the organisation is because of specific factors. They have adopted the
opportunity strategy of growth. According to the information provided by Sharma et al. (2019),
we can observe that in recent times Patanjali skimmed an opportunity and launched the attached
noodles product. The time it was launch, clearly show that the launch of the product was
intended to give challenge to their biggest competitor in the field of instant noodles in India,
Maggi noodles. Nestle work facing issues from the scandal of presence of excessive
monosodium glutamate in the negatives makers and which is why the product was temporarily
banned in India.

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The entire product was ultimately band, because of the lack of legitimacy to sell products
like girls under the brand name of Patanjali Ayurvedic the organisation showed us how to
capitalise on business opportunities (Pandey and Sah 2016). This is definitely example of
innovative market reception and proprietorship. The readiness with which the instant noodles
product was launched in the market, in the short span is really remarkable.

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The primary strength of the company is that they have been able to develop a strong fan
base and trust of the followers. The organisation has been able to achieve this, keeping the image
of Baba Ramdev as a Yoga guru in the front. Before the brand was established by Balakrishnan,
and before they had entered into the domain of full-fledged marketing activities, a large number
of people in India had associated godliness with him. Nevertheless it can be expected that people
who trust him and following this blind followership, Baba Ramdev innovated the problem of
finding the solutions of day-to-day life with the products of Patanjali. The marketing campaign
of the products was also done in such a way so as to convey that each of the products was giving
relief to the public from artificial product consumption. For evidence, whenever any medicine
was launched, the competition was directly made with the other leading brands in the market,
without taking their names (Jaggi and Ghosh 2017). It was conveyed that the original medicinal
formula is present in very less proportion in the conventional medicines because of which they
are least effective. On the contrary, Ayurvedic medicines developed by Patanjali Ayurvedic
Limited were portrayed to be developed from original ingredients, which were perhaps never
before used by any other Ayurvedic company in India. It was portrait that every single formula
of products in Patanjali Ayurvedic Limited was handmade by Baba Ramdev. It was hardly true,
yet with the high faith people had in him, major section of the people watching the
advertisements seemed to believe that only.
The strategy of “telling is the new selling!” had been adopted by Baba Ramdev. The
unique point of sales was that instead of emphasizing on sales of Patanjali products, he started
the advertising campaign in order to build relationship of the customers with the products. that is
why in most of the advertisements, it was displayed how the Patanjali products generated values
for the family and the individual family members. For evidence, in the advertisement for

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Patanjali honey,, it was evident that the consumption of artificial Honey, developed from
Chemicals could actually harm the body instead of causing any good to it (according to the
advertisement). In contrast, the the advertisement displayed some signs of pure honey and
immediately showed that the Patanjali Honey contained all those signs hence establishing that it
was pure. The last segment of every advertisement was that Baba Ramdev had himself invented
the formula for the product and hence it carried and send message that the products cannot be but
pure and best. Analysing advertising campaigns of Patanjali Ayurvedic Yadav (2017), discusses
that the organisation sells relation, magic and stories.
Advantage of a visible brand
The brand name Patanjali Ayurvedic is not half as popular as the brand name of the
leading personality of Baba Ramdev Who is behind the brand. Starting from the Himalayan
Caves in the year 1993, which is situated in the island town of Gangotri to the Anti Corruption
Andolan in India in the year 2011 by supporting the Lokpal bill, Baba Ramdev has soaked all
line light and developed a strong visibility for his personal image in almost every target segment
of age, gender religion and caste all over the world (Shukla 2018).
Smart pricing
The price of Patanjali products is comparatively less than almost all peers in the same
category. According to Balakrishna, the input costs are very low because the organisation
directly extracts raw materials from farmer and no middleman-ship is entertained by the
organisation. Besides, the company have their own face for promoting the brand name, in the
form of Baba Ramdev and that is why they do not need to incur any cost for contracting any

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brand ambassador. The salaries provided to the employees of Ayurvedic segment of Patanjali
Limited is also modest because of which employee grievances are very less (Yadav 2017).
Now it can be concluded from the above analysis that because the production and sales
promotion cost is less, in comparison to what the other companies are spending, the product
costing is directly impacted and Organisation is easily cable to offer the products at lesser than
market convenient pricing.
However there are some categories of product where people might not be attracted by the
promoting of Baba Ramdev as they do not find suitable reasons. This includes the cosmetic, Hair
Care as well as bodycare range of products of Patanjali Ayurvedic Limited. This is because the
glamorous promotion and high brand value of the Other leading brands in the market is much
higher in comparison to the list colourful advertising campaign of these product categories by
Patanjali Ayurvedic Limited. Market survey, for the last 5 years during which the brand has
gained popularity shows that people has less perceived the claim for using your products in terms
of body care, Healthcare, makeup and cosmetics (Ahmed, Sultana and Ahmed 2018). That is
why, Fair and lovely is still a more popular brand in term of cosmetic care compared to products
of Patanjali Ayurvedic Limited.
Brand communication strategies
Average strategy through social media campaigns
Product advertisement is mostly done nowadays through digital domains like Facebook,
Instagram and so on. This product awareness strategy was also utilised by Patanjali to spread
awareness regarding their products by educating and engaging people all over social media. Baba
Ramdev himself as well as Patanjali products has more than 7 million likes and over 600

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thousand followers on Facebook and Twitter as wel (Sengar, Sharma and Agrawal 2017)l. The
strategy of communicating with the followers through live chat has also enhance the popularity
of of the brand ambassador and he has undertaken the same studies for promoting events as well
as new product launches also.
Trust and Faith of the retail outlets
Previously, Patanjali used to sell their products only in the Ayurvedic stores which were
rarely located in India. However, nowadays, almost all Big Bazaar outlets sell Patanjali products.
The customers cannot only find Patanjali medicines in retail outlet, but they can also get the free
consultation from an Ayurvedic doctor in the Patanjali outlets of Ayurvedic medicines (Pandey
2017). These intrinsic and extrinsic factors have helped in development of trust and faith in the
brand because of which people feel connected with the product also.
Future propositions and recommendations
The rural Push
The rural markets of India consists of 70% of the population and the contribution of the
sales of of Ayurvedic products in rural regions accounts for only 9% of the revenue collected by
average brands in the FMCG industry. Hence, this organisation can emphasize on increasing
distribution as well as their support infrastructure in the rural areas of north, north west and north
east specifically (Singh and Gopal 2016). Considering the high popularity of Ramdev in those
areas, it can be emphasized that the product sales will be fostered if the advertising and
promotion of the product is done in those areas.
Focusing on Exports

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The entire organisation has been established as a big brand name in the Indian market,
they have centred their operations in the residential market only (Pandey and Sah 2016). This
form of trading will keep the division of aggregate deals on the lower side after they reach the
level of market saturation (Sharma et al. 2019). This is the primary time to concentrate on
contracting overseas distributors and building reputation as a authentic Indian brand of exquisite
and premium products in the surrounding countries also.
Conclusion
The organisation has no doubt developed as a revolution in the FMCG industry and
challenged almost all major occupants in a very short time. However, they have their share of
difficulties also. The political relationship and involvement of Ramdev in political administration
was perceived by people in both positive and negative ways. Another limitation is that they do
not have directors or advertisers who are popular in business development. Nevertheless the
unique brand name and brand value proposition along with the innovative point of sales has
helped the organisation to endorse their products. In spite of the fact that the Atta noodles
product was banned by the government, big product diversification strategy and other branding
and marketing strategies has helped the company to recover the market loss in no time.

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Reference List
Ahmed, J.U., Sultana, H. and Ahmed, A., 2018. Patanjali ayurved invades India. Decision, 45(1),
pp.75-91.
Arora, N., Singh, G. and Grewal, B., 2016. Impact of Spirituality on Consumer Perception
creation and Preference of Products wsrt FMCG and Patanjali Ayurved Ltd. in Punjab. Journal
of Marketing Vistas, 6(2).
Gupta, R., 2016. Disruptive marketing and brand building: A case study of Patanjali, Ayurveda
Limited. Advances in Economics and Business Management (AEBM), 3(2), pp.225-231.
Jaggi, R. and Ghosh, M., 2017. Consumer Perception of Patanjali Products: An Analytical
Study. IUP Journal of Brand Management, 14(1).
Pandey, M., 2017. Staggering growth of patanjali ayurvedic limited: An analysis. International
Journal in Management & Social Science, 5(4), pp.62-68.
Pandey, P. and Sah, R., 2016. Growth of Swadeshi-A Case Study on Patanjali Ayurved
Limited. International Journal of Engineering Technology, Management and Applied
Sciences, 4(7), pp.7-14.
Sen, S. and Rajagopal, K., 2017. SWOT ANALYSIS OF FAST MOVING CONSUMER
GOODS COMPANIES–A CASE STUDY ABOUT PATANJALI AYURVED IN INDIA.
Sengar, A., Sharma, V. and Agrawal, R., 2017. Market development through integrating value
chains–a case of Patanjali Food and Herbal Park. Emerald Emerging Markets Case Studies, 7(4),
pp.1-22.

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Sharma, V., Gulati, S., Pandey, A. and Gautam, D.N.S., 2019. Trends in Ayurvedic FMCG
Market. Journal of Young Pharmacists, 11(2).
Shukla, S., 2018. The Marketing Mix Strategies of Patanjali Ayurveda. Journal of Retail
Marketing & Distribution Management, 1(3), pp.25-36.
Singh, B. and Gopal, R.K., 2016. Demystifying the Brand Patanjali-A Case on Growth Strategies
of Patanjali Ayurved Ltd. PES Business Review, 11(1), p.51.
Thomas, S. and Vatavwala, S., 2019. Patanjali Ayurved Limited: Driving the ayurvedic food
product market. In Case Studies in Food Retailing and Distribution (pp. 119-135). Woodhead
Publishing.
Yadav, N. and Tikoria, J., 2017. PATANJALI AYURVED LIMITED: A LOCAL PLAYER
POSING THREAT TO MULTINATIONALS. ET Cases.
Yadav, R., 2017. Patanjali ayurveda limited: Attraction of ayurveda products. South Asian
Journal of Business and Management Cases, 6(1), pp.100-108.
Yadav, S.K., 2017. Rapidly Changing Marketing Channels of FMCG Companies –A Case
Study of Patanjali Ayurved Limited. Journal of Commerce and Trade, 12(1), pp.131-139.

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Appendices
Appendix 1: Last quarter revenues of the FMCG companies of India

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Appendix 2: rising popularity of Products

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Appendix 3: The revenue share

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Appendix 4: Revenue in INR bn.

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Appendix 5: Stagnant growth of the organisation